Ace Engitech Ltd Management Discussions

The management of Ace Engitech Limited is pleased to present its Management Discussion and Analysis Report analyzing the Companys operations and Information Technology related Services. The report also Contains expectations of the Companys business based on the current market trends.

INDUSTRY STRUCTURE AND DEVELOPMENT IN THE INDUSTRY

Although Information Technology Related Services Industry is amongst the oldest industries in India and it is growing very rapidly.

It is an industry, which has evolved into a highly competitive and innovative driven industry, characterized by the presence of various sizes of players varying from solo-operators to small-to-medium sized niche players as well as established big players operating in different spaces in the entire spectrum of services.

It is important to note that these forecasts will have to be reconsidered in the light of the current global pandemic that has currently crippled most of industries. Although we are still in development phase of the business and hence not incurring any operating costs, but the company has taken cognizance that whenever the business would stabilize, there would be renewed focus on values thereon and we are actively evolving our development strategy accordingly.

OPPORTUNITIES AND THREATS

Information Technology related Services to be best opportunity for the company. Tough competition, slow economic growth and many industries like the same services are going on in market and it seem to be the biggest threats to the industry.

SEGMENT WISE AND PRODUCT WISE PERFORMANCE

The NBFC license of the company was cancelled by RBI on 18.10.2018 since the company couldnt reach the net worth of Rs. 200 lakhs. Thereafter, the Company has not been engaged in any business activity. The Companys income pertains to the interest earnings on previous investments.

The Company has incurred losses of Rs. 48.09/- Lakhs in financial year 2024-25 as compared to losses incurred in Previous financial Year 2023-24 of Rs. 15.54/- Lakhs during the reporting period.

OUTLOOK

Looking at good market sentiments steep rise is expected in near future. As a result, the company has been changed its business activity from financial to IT infrastructure related services will boost up and the Company is expected to show a better performance in the upcoming financial years.

RISK & CONCERNS

Tough competition, slow economic growth, changed activities from Financial to Information Technology related Services, rapid changing statues and regulatory framework, etc. are the major risk areas in the Companys business. By using our experience, we hope to perform better in the year to come in spite of these risks.

INTERNAL CONTROL SYSTEM & THEIR ADEQUACY

The Company had adequate internal control system commensurate with its size and nature of business.

Your companys internal control procedures are adequate to ensure compliance with various policies, practices and statutes. Your Company maintains a system of internal controls designed to provide reasonable assurance regarding the following:

• Effectiveness and efficiency of operations

• Adequacy of safeguards for assets

• Prevention and detection of frauds and errors

• Accuracy and completeness of the accounting records

• Timely and accurate preparation of reliable financial information

The Companys Internal Auditors have conducted periodic audits to evaluate the adequacy & effectiveness of financial and operating internal controls, to report significant findings to the Audit Committee of the Board and to provide reasonable assurance that the Companys established systems, policies and procedures have been followed.

The Audit Committee takes due cognizance of the observations made by the auditors and gives their suggestions for improvement. The suggestions of the Audit Committee further ensure the quality and adequacy of the control systems.

FINANCIAL & OPERATIONAL PERFORMANCE

The company has incurred a loss of Rs. (48.09)/- Lakhs during the year 2024-25 as compared to losses incurred of Rs. (15.54)/- Lakhs in the previous financial year. Management periodically reviews the operational performance of your Company against the approved plans across various parameters and takes necessary actions, wherever necessary.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Human resource development is paramount in every organization. The management continues to lay emphasis on identifying and developing talent on organization with a view to retain them and impart further training to those capable of handling additional responsibilities. This works to increase employee satisfaction within the organization, by providing employees with fresh challenges. Developing people and harnessing their ideas of high priority for the Company.

The Company recognizes the importance of Human Resource as a key asset instrumental in its growth. The Company believes in acquisition, retention and betterment of talented team players. HRD activities are taken in the Company involving positive approach to develop employees to take care of productivity, quality and customer needs. The Company has well developed management information system giving daily, monthly and

periodical information to the different levels of management. Such reports are being analyzed and effective steps are taken to control the efficiency, utilization, productivity and quality in the Company.

CHANGES IN RETURN ON NET WORTH

Return on Net Worth is computed as net profit divided by Net Worth. Net loss was Rs. 15.54 Lakhs in the previous financial year against net loss of Rs.48.09 Lakhs in the current financial year. Due to this return on net worth is at -05.90 % as compared to the previous financial year at -27.63%.

OTHER DISCLOSURES

Other Disclosures with respect to Management Discussion and Analysis Report as required under Regulation 34(3) read with Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, are either NIL or NOT APPLICABLE.